Refinance decision: The original loan is for $150,000 with terms 6%, 30 years payable monthly. The elapsed time on the original loan is 5 years. The new loan rate is 3.6% which will be held 7 years. The cost of refinancing is $3,000. The opportunity cost is 9%.

A. Prepare a table that calculates the change in monthly payment and change in Loan Balance numbers.

B. Do the Present Value Analysis.

Answer rating: 100% (QA)

Answer to part A Formulae for emi calculation EMI P x i x 1RNTx1RN1 Where P isPrincipal Amount of lo... View the full answer